Bessent says yields show stable inflation expectations, supply shocks need not prompt hikes

Aug 31, 2026 14:37 (21d ago)

Bessent said Treasury yields show inflation expectations are flat or falling and that supply shocks traditionally do not warrant rate hikes.
Two-year and 10-year Treasury yields recently reached their highest levels since January 2025.
Bessent said underlying inflationary pressure was very low and the Treasury had not yet bought anything in the bond market.

U.S. Treasury Secretary Scott Bessent said Treasury yields indicate that inflation expectations are stable or declining, despite two-year and 10-year yields recently reaching their highest levels since January 2025. In CNBC comments reported on Aug. 31, he said underlying inflationary pressure was very low, supply shocks do not traditionally warrant interest-rate increases, and the Treasury had not yet bought anything in the bond market. He declined to predict the Federal Reserve’s next decision. His remarks came amid debate over energy disruptions linked to geopolitical tensions, including the Iran conflict.